Introduction: scheme

Regulations: See Annex I and the instructions for the application of signs, indices or modules in Personal Income Tax contained therein in Order HAC /1264 /2018, of November 27 ( BOE of 30).

The net return is the result of the sum of the net returns corresponding to each of the agricultural, livestock and forestry activities carried out by the taxpayer. ⁽¹⁾

The net return corresponding to each activity must be obtained by successively carrying out the operations that are schematically indicated below:

Phase 1

Full income (including grants, compensation and aid PAC lump sum payment)

(×) Net return index

(*) When the recipient of direct CAP single payment aid has not obtained income from agricultural or livestock activities, the net return index to be applied is 0.56.

= PREVIOUS NET PERFORMANCE

Phase 2

(−) Reduction due to amortization of tangible and intangible assets (excluding forestry activities)

= MINORIZED NET INCOME

Phase 3

(×) Corrective indices (depending on the type of activity and certain circumstances)

= NET PERFORMANCE OF MODULES

Phase 4

(−) General reduction: 5 per 100

(−) Reduction of young farmers: 25 percent

(−) Extraordinary expenses due to exceptional circumstances (fires, floods, sinkholes...)

= NET ACTIVITY RETURN

Phase 5

(−) Reduction due to irregularity: 30 percent

= REDUCED NET RETURN FROM THE ACTIVITY

^{(1 )} The agricultural, livestock and forestry activities included in the objective estimation method in fiscal year 2019 are listed in this same Chapter.^(Back)